Tenant demand rose again in March while landlord instructions stayed deep in negative territory, according to the latest RICS survey, pointing to more upward pressure on rents even as the wider sales market loses pace. For landlords, that keeps the familiar imbalance in place: softer buying conditions do not automatically mean easier rental competition.
RICS says demand is up while landlord supply stays weak
Property118’s summary of the March RICS survey reported that tenant demand edged up to a net balance of 10 percent while landlord instructions remained at minus 25 percent. Surveyors also said rents are likely to keep rising in the near term.
That matters because the rental market is being shaped by supply first, not confidence. Even with more caution spreading through the sales side, landlords are not returning in enough numbers to ease pressure. RICS’ latest housing market release – published here – also showed buyer enquiries and agreed sales weakening as higher borrowing costs hit demand.
In other words, a weaker owner-occupier market is not yet producing a meaningful relief valve for renters. If fewer buyers proceed and fewer landlords expand, rents can still move up.
Landlords face a market with support for rents but not for easy expansion
The obvious positive for existing landlords is pricing support. Limited supply and a modest rise in tenant demand should help void management and headline rents in many areas. But the same report also shows a market clouded by higher mortgage costs and geopolitical uncertainty, which makes acquisition decisions harder to underwrite.
This follows Landlord Knowledge’s report on the landlord exodus slowing but one in four still selling, which suggested supply pressure was easing only gradually. The latest RICS data points in the same direction: the pace of exit may not be accelerating, but fresh landlord stock is still not arriving fast enough to loosen the market.
There is also a warning in the detail. Rising rents can look supportive in a headline, but borrowing costs and regulatory change still limit how aggressively many landlords will want to grow. The result may be better income from existing stock rather than a broad recovery in buy-to-let appetite.
What this means for landlords
- If you hold good stock in undersupplied areas: rental pricing should remain firm, especially where tenant demand is still rising.
- If you’re looking to buy: weaker sales momentum may create room to negotiate, but higher finance costs still need careful stress testing.
- Watch for: whether landlord instructions improve over the next two months – that will tell landlords more than the sales headlines.
- Bottom line: the rental market still looks tight, but that does not mean expansion is suddenly low risk.
Editor’s view
Landlords do not need another lecture on strong demand – they need more supply if the sector is going to stabilise. Right now the market still looks good for rents and awkward for reinvestment, which is not the same thing as healthy.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 09 April 2026
Sources: RICS
Related reading: Landlord exodus slows but one in four still selling as RRA deadline looms
